S Kumars to list Reid & Taylor

Textiles maker S Kumars Nationwide is looking to raise between $100 million to $150 million

by listing its subsidiary, Reid & Taylor, in the next six months. The company is also talking to private equity firms to spin off its brand Belmonte.

S Kumars currently holds about 75 per cent in Reid & Taylor, with Singapore’s GIC owning the rest. In June 2008, GIC Special Investments had agreed to invest Rs 9 billion in Reid & Taylor through a fresh issue of shares and warrants. Part of the IPO proceeds would go for retail expansion, part for capacity expansion and part of it to increase S Kumars’ presence in overseas markets.

The company sells apparels under a variety of brands from Reid & Taylor which caters to the premium and upper-middle segment of the suiting market to Belmonte suits and shirts for the economy segment. It also sells suiting under the S Kumars brand and home textiles under the Carmichael House brand.

S Kumars is talking to some foreign private equity players for spinning off Belmonte into a separate subsidiary in the next few months to bring in more funds and is also looking to launch a share sale to institutions worth up to $100 million within the next 12 months as valuations improve. It has set a capex of about Rs 7 billion for the next fiscal for brand-building and for new equipment and the funds would be raised via a combination of internal accruals, debt and fresh equity.

In June 2009 the company acquired US clothing company Hartmarx Corp for about $120 million but is not doing any more acquisitions over the next six months. Its international business accounts for about 45 per cent of its consolidated revenues and the firm is seeing a good pick-up in orders from traditional strongholds such as the US and Europe.